The Red Rocks concert as it was performed on the day they actually played there IMO is superior to the commercially released recording for a good many reasons, which most of us should be aware of. For example I Fall Down, Electric Co, Two Hearts, etc
If one's "education" about that show was limited to what we were presented on Under A Blood Red Sky (LP) and the Live at Red Rocks VHS releases, one would be missing some key gems imo.
So yes, it was "better" live.
U2 felt that the versions of the songs they included, however, were "better" than the ones they actually performed that day. I'm not sure I totally agree, but that's their prerogative to package it the way they want, I suppose.